Exxon is Close to Buying Pioneer, the Deal Could be Worth $60 Billion
The largest American oil and gas company Exxon Mobil is close to reaching an agreement to purchase shale producer Pioneer Natural Resources Co., the transaction amount could be about $60 billion, The Wall Street Journal writes, citing sources.
According to them, the deal could be concluded in the coming days, although there is still a possibility that it will not take place.
In April, the WSJ wrote that the companies were in preliminary negotiations.
After posting record profits in 2022, Exxon has ample cash available and has begun exploring options to expand its presence in the shale sector, the people said.
Buying Pioneer, which has a market capitalization of about $50 billion, would be the company’s biggest deal since Exxon and Mobil merged in 1999. This would give Exxon Mobil a dominant position in the shale fields of the Permian Basin, where operations are an important part of its business development.
Exxon stock quotes have decreased by 1.2% since the beginning of this year, and Pioneer by almost 6%. Exxon’s market value is estimated at $436 billion.
